It isn’t the begin to the week that Ed Miliband, the vitality secretary, would have been hoping for: greater than 2,000 non-public sector jobs in Scotland in danger from the collapse of Petrofac, the London-listed oilfield providers group.
Its slide into insolvency was triggered by final week’s cancellation of a significant contract by its largest buyer, however the failure of an organization as soon as valued at greater than £6bn has been a very long time coming.
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Directors at Teneo will now try to salvage what they will from Petrofac’s wreckage.
“The group’s operations will continue to trade, and options for alternative Restructuring and [sale] solutions are being actively explored with its key creditors,” Petrofac stated on Monday morning.
“When appointed, administrators will work alongside Executive Management to preserve value, operational capability and ongoing delivery across the Group’s operating and trading entities.”
For hundreds of staff, the longer term is now unsure, though individuals near the corporate say they’re hopeful {that a} purchaser may be discovered swiftly for its North Sea operations, with one suggesting that it may even occur within the coming days.
That might be a reduction to Mr Miliband, whose vitality coverage has come below rising scrutiny in current months amid dire warnings about the way forward for Britain’s offshore oil trade.
